Topics in Category: Bagasse - Pakistan - German Renewable Energy Forumhttp://pgref.org
Sun, 18 Feb 2018 05:08:31 +0000Joomla! - Open Source Content Management/media/kunena/images/icons/rss.pngTopics in Category: Bagasse - Pakistan - German Renewable Energy Forumen-gb2 Sugar Mills to Set Up 53MW Bagasse Power Plants - by: farheenhttp://pgref.org/index.php/forum/bagasse/15840-2-sugar-mills-to-set-up-53mw-bagasse-power-plants#15837
http://pgref.org/index.php/forum/bagasse/15840-2-sugar-mills-to-set-up-53mw-bagasse-power-plants#15837
Mehran Sugar Mills Limited (MSML) and Faran Sugar Mill Limited (FSML) are developing 26.5MW separately at a cost of Rs 750 million and Rs 650 million. MSML, according to Company Secretary Muhammad Hanif Aziz, decided to set up the power generation plant "in view of the rising demand for electricity in the country and government's favourable policy for promoting bagasse-based power projects."

Bagasse is a dry pulpy residue left after the extraction of juice from sugarcane. Subject to shareholders' nod, the project would be 100 percent owned by Mehran Sugar. "The company has, in principal, decided to invest equity up to Rs 750 million in the power project," he said in a stock filing. The millers have set December 2018 as a deadline for operationality of the proposed power plant. Besides, MSML would be setting up a separate firm at Rs 125 million to diversify its business from sugar. The company would be involved in the manufacturing and branding of confectionary/backing products, he said.

"Mehran Sugar plans to acquire 24 percent equity of the new company," the official said.

Likewise, Board of Directors of FSML, another sugar maker, also has principally agreed to invest Rs 650 million for establishing 26.5MW bagasse-fired power plant. The HP cogeneration power project, according to company secretary Muhammad Ayub, would be built through a wholly-owned subsidiary. "Due diligence is under process," said the company official in a stock filing.